Manufacturing & Supply Chain

BAE Systems plc has agreed to acquire the Ball Aerospace business from Ball Corporation for c.$5.55 billion in cash, subject to customary closing adjustments. The proposed stock transaction will be treated as an asset purchase for federal tax purposes, with an expected net present value tax benefit of c.$750 million making the underlying economic consideration for the business c.$4.8 billion.

UK-based BAE Systems plc provides some of the world’s most advanced, technology-led defence, aerospace and security solutions. Employing more than 93,000 people in around 40 countries, BAE Systems plc develops, engineers, manufactures, and supports products and systems to deliver military capability, protect national security and people, and keep critical information and infrastructure secure.

Headquartered in Colorado in the US and with more than 5,200 employees, Ball Aerospace is a leading provider of mission critical space systems and defence technologies across air, land and sea domains.

Charles Woodburn, Chief Executive of BAE Systems, said: “The proposed acquisition of Ball Aerospace is a unique opportunity to add a high quality, fast growing technology focused business with significant capabilities to our core business that is performing strongly and well positioned for sustained growth. It’s rare that a business of this quality, scale and complementary capabilities, with strong growth prospects and a close fit to our strategy, becomes available.